William Wragg- Budget Response
HM Treasury Budget Summary:
Today, Chancellor of the Exchequer Rishi Sunak MP, delivered his Budget to the House of Commons. This is an annual fixture in the parliamentary calendar which sets the tax and spend proposals for the year ahead, alongside providing projections for future growth.
The past year has been incredibly challenging. Today’s budget set out plans to provide support through the rest of the pandemic and ensure a strong recovery.
Key headlines include:
• Furlough extended. The furlough scheme will continue. No changes until July, where we will ask for employers to pay 10% of the scheme and then 20% in August and September.
• The £20 Universal Credit uplift has been extended for six months
• The self-employed income scheme (SEIS) has been extended and improved. People who did not previously qualify due to no tax return can now take part, provided they have submitted a return for 2019/20.
• A new 'Restart' grant in April. For non-essential retail, which will open first, this will be up to £6,000 per premises. For hospitality, leisure and personal care including salons and gyms, this will be worth £18,000.
• There will be a business rates holiday until June, then rates will be discounted by two thirds.
• For the hospitality and tourism sector, the reduced rate of VAT of 5% will continue to 30th September, after which it will be 12.5% until the new financial year.
• Small business will be protected from rises in corporation tax.
• There will be an increase in the personal allowance to £12,570, after which it will be frozen until 2026.
• If companies invest, we will enable them to deduct that from their tax bill at 130%. OBR projections have suggested that this will boost investment by 10%
• Alcohol duties frozen.
• Fuel duty frozen.
• New support to increase productivity- training for managers and support to develop digital capacity.
As the budget document has been released today, I will spend the next few days reading the Chancellor’s plans for future economic growth. Below, I have shared some further information on today’s budget. Should you have any further questions on what the Budget means for you, please do not hesitate to get in touch.
